Increase in green fuel production possible following connection to Swedegas network

Preem is about to commence construction of a new hydrogen gas plant at its refinery in Gothenburg. The aim is to increase production of renewable fuels, in which hydrogen gas is a key component. The new plant represents a total investment of 635 million kronor and is due to be commissioned in February 2019. A direct connection to the Swedegas gas grid enables the construction of the hydrogen plant.

“This investment is essential if we are to increase renewable fuel production. The new plant will raise the annual volume to 200,000 m3, with the potential to reach 500,000 m3 by the beginning of the 2020s,” said Preem CEO Petter Holland.

Hydrogen gas is used in the production of Preem Evolution Diesel, with a renewable content of 25-40 per cent, as well as Preem Evolution Diesel+ with a renewable content of more than 50 per cent. Evolution diesel fuels can be used in all diesel vehicles and can be mixed with all other types of diesel. They offer the same power and they cost the same as standard fossil diesel.

Hydrogen gas is currently obtained as a by-product from another plant that produces petrol components. A shortage of hydrogen gas over many years has been a limiting factor in the production of renewable fuels.

The new hydrogen gas plant will have a capacity of 18,500 m3 per hour and will be operated using natural gas from the Swedegas transmission network in Gothenburg. Swedegas will build a 1.2 km pipeline as well as a metering and control station between the new plant and the gas grid.

“The gas network offers numerous benefits. Being able to increase production of biofuels safely and effectively is entirely in line with how we view development in the future,” said Johan Zettergren, Swedegas CEO.

The new hydrogen gas plant will be located adjacent to the current processing facility and will occupy an area of 480 square metres. Preem is also planning for the future expansion of the plant as part of its ambition to increase production of green fuels.

Swedegas is an infrastructure company that invests in smart energy systems. The company owns the gas grid, which extends from Dragør in Denmark to Stenungsund in Sweden. Swedegas transports energy to distributors and directly connected customers each year. The gas grid supplies 33 municipalities, as well as industrial enterprises, combined heat and power plants and vehicle filling stations, with natural gas. Swedegas is also in the process of developing an infrastructure for biogas, hydrogen gas and liquefied natural gas (LNG). www.swedegas.com

Preem is the largest fuel company in Sweden. Our vision is to lead the transition towards a sustainable society. Our two refineries in Gothenburg and Lysekil are among the most modern and environmentally adapted in Europe. In total, they have refining capacity of more than 18 million cubic meters of crude oil per year and around two-thirds of the production is exported. We refine and sell gasoline, diesel, heating oil and renewable fuels to companies and consumers in Sweden and abroad. Preem has a nationwide service network with 570 fuel stations for private and commercial traffic. Preem has over 1,400 employees and a turnover of SEK 56 billion in 2016. To learn more, please visit, www.preem.com.